Question

The profit and loss system of capitalism helps entrepreneurs determine the

O political impact of the use of resources in the production of a product.
O best human resources but not capital resources to use to produce a product.
best combination of resources to use to produce a product.
O best capital resources but not human resources to use to produce a product?

Answer 1

best combination of resources to use to produce a product.

Step-by-step explanation:

Capitalism also referred to as free-enterprise system or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, capitalism is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.

Simply stated, a pure capitalism is a type of economy that is completely driven by demand and supply of goods and services.

In a society, the role of an entrepreneur is mainly focused on bringing the four (4) factors of production together and take the risks of producing output, so as to generate revenue through sales and make economic profits in the long-run.

Hence, the profit and loss system of capitalism helps entrepreneurs determine best combination of resources to use to produce a product.